The Benefits of Volunteering: Physical and Mental

Volunteering time to organizations, as well as providing monetary donations towards charities and non-profits, have their obvious benefits. Selflessness, doing right by others, beefing up the resume, and tax breaks, but what about the others? The ones that aren’t so obvious.

Numerous studies have found that acts of charity actually has positive mental and physical impacts on those who do so, no matter their age or circumstance. Physically known to lower the risk of dementia, reduce cardiovascular risk, and lower blood pressure, generosity has also been found to lead to less depression and anxiety as well as increase overall happiness.

There is a part of the brain called the mesolimbic pathway, or the reward pathway. When people commit, or even think about small acts of kindness and generosity, they activate this part of the brain, which is also responsible for managing feelings of gratification. Behaving selflessly actually causes our bodies to release our “happiness chemicals” like dopamine, endorphins and oxytocin.

While the thought of providing for ourselves sounds a bit more appealing than providing for and giving to others, it won’t lead to long-term happiness the way selflessness does. “If you are a recipient of a good deed, you may have momentary happiness, but your long-term happiness is higher if you are the giver,” said Dan Ariely, professor of behavioral economics and psychology at Duke University.

Ariely theorizes that the increase in happiness derives from the satisfaction that following rules and taking credit for doing something good brings us. He also notes that how we give is an important factor.

A 2012 study from the Health Psychology journal found that altruistic volunteers will live longer than those who don’t. A national survey of 4,500 American adults–the 2010 United Healthcare/Volunteer Match Do Good Live Well Study–found that those with a generous spirit have been known to experience a reduction in troublesome sleep, helplessness and hopelessness, and anxiety, as well as a stronger sense of control over chronic conditions. They also are known to have better relationships with others and healthy social networks.

Experts have even gone so far to say that if the positive effects of volunteering could put into a bottle and sold in stores, the inventor would be a billionaire. In terms of using volunteering as a means to manage chronic pain, Stephen Post, founding director of the Center for Medical Humanities, Compassionate Care, and Bioethics at Stony Brook University School of Medicine,believes “if you could say that on a scale of 1 to 10, insulin as a treatment for diabetes is a 9.5, drugs for Alzheimer’s disease are 0.05, volunteering is somewhere up around a 7.”

One of the central theories behind volunteerism as a marker of optimal physical health is that it leads to boosts in self-esteem and prevents individuals from becoming socially isolated, which have both been long connected to better health. Additionally, certain volunteering activities can expose participants to environment and circumstances that may humble their own, reducing stress and unhappiness, which have been known to reduce cardiovascular risk in adults.

“We are on the cusp of reaching the point where we are going to see more areas in clinical care, including preventative medicine, psychiatry, adolescent pediatrics, geriatrics, pain clinics and cardiology, where health care professionals recommend volunteering as a therapeutic behavior,” said Stephen Post.

To learn more, visit Jerold Novack’s philanthropy blog here!

Technology: New York City Real Estate

This is the age of fast, readily available information. Technologies influence over industry is seemingly endless. A city like New York, which attracts the best and brightest individuals of their industries, deserves just that: the most innovative and efficient real estate technology.

In the realm of real estate, the potential to make management and building data readily accessible is overwhelming with the use of technological advancements. For real estate professionals, both on the commercial and residential scale, online platforms can assist in efficiently and intelligently completing work. Analyzing trends become simpler, market changes are easier to detect, resulting in more concrete advice derived from solid information from data which is accessed more efficiently.

The marriage of real estate and technology is expanding to all facets of the industry, with New York real estate investors surging approximately $62 million into platforms aimed to enhance the system for both residential and commercial real estate.

That $62 million is almost 20 percent of the $322.5 million that has been invested in tech companies globally in 2015, the majority of that money–$221.8 million–has gone towards tech companies focusing exclusively on commercial real estate. The remaining $100.7 million went towards companies dealing with residential real estate.

Of the five-hundred commercial and residential real estate professionals polled for the RE:Tech report, about 85 percent of those working in commercial real estate said they were taking the time to understand how these new platforms have potential impact on their business. Overall, 45 percent of those polled believe their brokerage is interested in folding new real estate technology into their business strategy.

And it’s a smart decision to make: NYC-based real estate tech companies raked in $28 million in the first quarter of 2015, and $34 million in the second. One of those companies, VTS, a platform for asset management and leasing, recently announced its fundraising of $21 million. Honest Buildings, a management platform for building owners, raised $5 million in fundraising this past summer.

Real estate investment is seeing a surge in the induction of crowdfunding platforms into the industry since the federal JOBS Act passed in 2012.Sharestates, a crowdfunding marketplace, has raised over $30 million since January of this year, and Cadre, an online investment platform, raised $18.5 million. This is a distinctive indication that the business is evolving and adapting to be as responsive as possible to client needs.


Visit Blue Rock Real Estate online to learn more about the leading private equity real estate asset management company.

To learn more, visit Jerold Novack’s asset management blog here!

A Crash Course in Impact Investing

Institutional and individual investors are doing it, fund managers are doing, UK Prime Minister David Cameron even gave a keynote address at the 2013G8 Social Impact Investing Conference in London on it; but what is impact investing?

By name, it seems to be part-investment, part-philanthropy, but is it more one than the other? Amy Bell, the Executive Director and Head of Principal Investments for J.P Morgan’s Social Finance business unit defines impact investing as “the deployment of capital with an expectation of financial return, where the success of the investment is also contingent upon achieving a state social or environmental goal.”

These investments can be made in both emerging as well as developed markets, and focuses on a variety of returns from below to market rate. The impact investment market is able to bestow capital upon some of the biggest issues impacting the world today, including housing, healthcare, and education as well as sustainable agriculture, clean technology and more.

There are four core characteristics when it comes to impact investing:

  • Intentionality- essential to getting involved in impact investing, investors should want to make a positive social or environmental impact just as much, if not more, than they want to make a profit.
  • Expectations- while philanthropic, these investments are still expected to generate a financial return on capital for the investors. At the very least, investors should expect a return of capital.
  • Range of return expectations and asset classes- targeting financial returns that range anywhere from below market to risk-adjusted market rate. These returns can be made across asset classes including cash equivalents and private equity.
  • Impact measurement-when entering the impact investment market, investors make a commitment to measure and report the social and/or environmental performance and progress of any underlying investments. They should uphold transparency and accountability at all times.

While impacting investing is a relatively new market, it is a rather substantial market with significant potential for expansion. Watch David Cameron’s keynote speech below discussing the importance of impact investing and how it needs to be adopted worldwide.

To learn more, visit Jerold Novack’s philanthropy blog here!

Investing in Real Estate

For the past decade, the real estate market has been experiencing some fluctuations. For years, it’s gone back-and-forth as being regarded as a safe investment. Now as we’re entering the end of 2015, investing in real estate is once again a relatively safe choice.

While most investors are still experiencing feelings of unease after the 2008 market crash, investment portfolios are once again being diversified with real estate investments since 2013. Some are even saying investing in real estate is safer than investing in gold.

And why would’t they? Real estate investments tend to have an excellent long-term yield in addition to being a great hedge against inflation. The trend to invest locally is popping up, as discussed on the Blue Rock Real Estate website. The driving force behind the trend, according to Richard Spillane of Spillane Money Management, is that investors buy properties in familiar neighborhoods partly for the income and partly for the diversification. The attraction to the properties is that investors can actually “get their arms around” them.

While there are still a few investors ready and willing to invest in properties that are miles, states, and oceans away, Elke Mariotti, a CFP and an agent with Signature Premier Properties in Huntington, N.Y., said the appeal to investing locally is in its simplicity.

In today’s market, real estate investing is more about capital preservation, as there is little impact on commercial real estate yields due to the spread between cap rates and interest rates remaining so great. U.S. real estate is a fully-priced market, and investors know it.

In the last year, Chinese investors have surged nearly $6 billion in United States commercial real estate properties, $4.5 billion of which went directly to properties in Manhattan. Foreign capital is beginning to look at secondary markets as lucrative, and are clearly taking advantage of it.

To learn more, visit Jerold Novack’s asset management blog here!